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Perhaps the most important reason why we invest is to preserve enough funds for our
"golden" days. But the problem is that not many individuals place even
the slightest emphasis on retirement planning. Try talking to anyone in their 20s
about planning for their retirement and they will probably just laugh at you.
As we get older, we incur more financial commitments. Without proper planning at
the initial stage of our life cycle, we are likely to encounter financial worries
and depending on the degree of the problems, we may run into insolvency.
In short, one should start thinking about what is ahead of you. Think beyond the
short-term. You should start your investment plan without any delay to ensure greater
assurance for you and your loved ones during your retirement period.
You should think and start planning straight away. Remember that the current interest
that you gain from your RM100,000 fixed deposits will not be enough to secure your
future.
There are ample of alternatives that one can do in order to maximize investment returns.
The global and Malaysian financial markets are getting more sophisticated. Today
there are many alternatives that one can consider when investing both on-shore and
off-shore.
You should seek advice from professionals advisers if you are not familiar about
any financial gameplan.
Inflation, a critical economic variable, affects the value of the money that we earn.
Inflationary impacts such as rising medical costs and other basic needs require greater
reserves be created for tomorrow's needs.
Adjusted for inflation, the RM2 that you spend to buy a bowl of noodles today may
not even be enough for a cup of coffee 5 years from now. You should therefore not
rely solely on rising current personal income to determine future wealth. Effective
investment planning will serve as a hedge against inflation.
Rather than sticking to well-tried opt ions such as the property and fixed deposits,
investors should widen their investment selections. Although low risk, your inherited
piece of land or house will unlikely protect you in the future.
Look beyond the traditional boundaries. There are many other opportunities with different
risk categories that offer you a more "productive" return.
An investment tool such as an aggressive unit trust fund investing in small-capitalization
stocks that involves more risk should not be just shut off completely. It can deliver
attractive returns if it were to be managed by a capable fund manager. Study thoroughly
any of the new investment options that is recommended to you before investing.
An investment gameplan is actually a simple process but if you are not familiar with
the world financial markets, make it a point to talk to someone in a similar field
who knows what is best - an investment advisor.
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